The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-07-31
Tx OYaER SIDR HEARD.
SALTY REPLY TO A BILL PILED
IN CHANCERY.
Insurance Men Who See Things DIFF.
ferenlly From the View Of
Aston Boyd.

mcbbb' IL ~ oahiot W. LIZ houutNy,
George Arnold, j. w. Richardson,
John Armlstead, Otto schwill, W. p.
Dunnavsnt, d. Canale, John A Denie,
John M. Hill, A. Renkert and d. Law.
horn, through their attorneys, Poston
& Poston, have fled their answer to
the suit entered sgainst them In the
Chancery Court, few days ago, by
Aston Boyd and others. They I'D.
init the seven persons named were
amongst the original incorporates, and
that the Citizens Insurance Com pany
was incorporated about the date men.
toned, and that five of the incorpora.
tors we're at the time directors In the
Arlington Insurance Company. They
also admit that the Citizens Iasurance
Company was incorporated for the
like purpose OF carrying on a gen.
eral ffs ard marine business
to that carried lon by the
Arlington, or any other OF the thou.
sands OF fire insurance companies
doing bushes In the country, there
being nothing peculiar and novel in
the business itself Of the Arlington
Company or the modes and manner
inlwhich 1t was transacted. They say,
however, that the stock holders In both
companies are largely the same, that
the Citizens Company was incorpora-
ted largely for the purpose OF taking gin
riaks and risks on country stores.
which the Arlington was diincliped
TO take, particularly the gin risks.
which were universally declined, and
On there were no resident insurance
companies In Memphis that would
carry these gin risks, or that were dis
poesd to carry risks on country store.
houses, 1t was thought to be wise
thing TO incorporate the Citixsns'
Company with these peculiar fea.
lures, 30 that when O merchant want.
Ing Inc urance for his country customers
came In he could be accommodated.
aud not DO compelled to 20 to New
Orleans or elsewhere TO secure IL.
These features were made known on
the advertising circulars sent ont. Re.
spondents suppose TO be true the
claims oil stock owned by all parties
named except Aston BOYD, who
claims $1,000, and ai.erward shows
he only owns $l4, 900 OF the Arlington
stock. They deny that lust tef)rs the
organization OF the Arlington Com.
pany, In view OF It's organization, Al
ston Boyd and J. II. Malone procured
lease for five years OF the Office, No.
~ Madison street, ut q rental Of $40
per month, in the nfme OF Alison
Boyd, with the privilege or refusal of
removal at the end OF five years. Such
lease was for the Company, and the
name OF Aston Boyd or J. II. Malone
nowhere appears thereon. IL Ia trus
tue lease 10 valuable, rents having
advanced, but II never will be worth |
200 per month, or anything like II.
The Offices we're not fitted PIP with |
fiescoed walls and velvet carpets with |
ell the golden unts OF q palace. IL Is
true that the Arlington has piospere cd
TO q salts 'actory degree, and has de. |
clared several dividends, but would
have been more 90 but Tor unprece.
dented Losses 10 nil mpanies. Re.
spondents deny that the Citizens wa,
organized with the sinister motives
and purposes in view detailed by the |
p alntifs, but for the purposes previ.
ously set forth. True, the Citizens
Company hiss its Office with the
but at q rental Of $50 Der
month, one.hsli the porter's wages,
bali the gas. coal, Ice, and any other
Incidentsls, and the charge Of the bill
hat this was an effort TO reach the
business OF the Arlington IL positively
lntrue. The fact IL, that while w. III.
kenneday is secretary Of both, Il is the
fule aud agreement OF the companies
hat when insurance Ia not directed 10
be specially put In the Cit1 rs by the
applicant that the Arlington takes the
Tisk ne FAR as II can or wishes, aud
'nly the surplus that would be re in.
Iured IN sumo other company is given
o the Citizens 10 the extent II Wis., OF
he rick, which .is limited 10 1900.
Ia these Gases the Arlington 70.
'eiyes from the Citiksns' the came
that II does from outside
insurance companies. Ia Addiiloa 20
aging the expenses above noted, the
ht's sns' Company employs It's own
'ookkeepsr. who does tbs collec ting
Md outdoor work OF the Arlington
iee 81 charge. IL 10 admitted tina,
Aston Boyd and W. T. Stone are not
directors In the Arlington, but the
Isiluie OF Boyd 10 continue In the
Board OF Directors 10 Attributable alone
10 his failure 10 control stock enough
o vote himself Into power, q, he made
very effort In his power 10 do
%, actually Offering and con.
racting with one Donnelly 10
live him about 30 cents on the dollar
or bis stock, amounting 10 about
1900. provided he would vote his
took Tor the Board Of Directors Boyd
night select, and Boyd then agreed
hat q brother Of Donnelly m leht and
hould be made the book keeper, and
hat X. A. odlum, q very particular
riend OF Donnely's, the secretary OF
he company. In the event OF the
ieieat a the "solidiiying" movement
4 Boyd and the defea, OF his ticket,
hen he sgreed 10 buy Donnellys
took and pay him IS to so cents on
he dollar Tor II. They were Informed
nd believed that tho stock was really
fought by Boyd at this price, when Il
Vas not worth on the market at that
ime more than 25 10 80 cents. IL
Gems, therefore. that Boyd IVES tina
'arty trying 10 mako himself "solid"
nd Secure In his Office" bu, "the
Iest laid plano OF mice and men Of,
'sng sglse," and the only result of
Ioyd's bolldiiy IL that he 20, Don.
III y'e stock at Is 10 20 cents on the
loilar more than u was worth on the
market, and the defendants got con.
rol Of the company and lie Offices.
The facts really are, that shortly NJ.
or the organization Of the Arlington
Aston Boyd Vas elected
h president At a salary Of $500 per
mum; he q. once began 10 use aud
appropriate the entire available assets
4 the company In bis own budnesa